Locums can access the NHS pension — but it takes effort
A widespread myth is that locum doctors and other healthcare locums cannot build an NHS pension. In fact, much locum work is pensionable, but only if you actively claim it. GP locums must complete Locum Forms A and B each month, declaring their pensionable income and paying contributions, to have that work count in the NHS Pension Scheme. Miss the deadlines and the work simply will not be pensioned. Hospital locums working through NHS staff banks may also have pensionable earnings, whereas those engaged via an external agency usually do not.
NHS-pensionable vs agency income
| Type of locum work | NHS-pensionable? | Best pension route |
|---|---|---|
| GP locum (Forms A/B submitted) | Yes | NHS Pension Scheme |
| NHS bank / direct trust engagement | Usually yes | NHS Pension Scheme |
| External agency placement | Usually no | SIPP / personal pension |
| Limited company locum | No (NHS) | Employer contributions to a SIPP |
Capturing non-pensionable income
Most locums have at least some income that cannot go into the NHS scheme. A SIPP is the right home for it:
- Vanguard (0.15%) — cheapest mainstream SIPP for index investing.
- AJ Bell (0.25%) — wider choice and accepts company contributions.
- Interactive Investor (£12.99/month) — flat fee that suits large pots.
Self-employed locums contribute from profit with tax relief; limited company locums should make employer contributions directly from the company for corporation-tax efficiency.
Practical tips for locums
- GP locums: submit Forms A and B promptly — the NHS deadline is strict and missed months are lost.
- Locum income is irregular, so make flexible SIPP contributions and use carry forward in busy periods.
- Watch the £60,000 annual allowance across NHS and private contributions; senior locums should check the taper.
- Keep your National Insurance record current for the £11,973 State Pension.
Different locums, different rules
"Locum" covers very different working patterns, and the pension picture varies accordingly. A GP locum working through practices can pension that income via Forms A and B, but only if submitted within the strict deadlines. A hospital locum engaged directly by a trust or through the NHS staff bank is often pensionable automatically through payroll, whereas the same doctor placed by an external agency usually is not. Allied health locums — pharmacists, physiotherapists, optometrists — and nursing locums follow similar logic: NHS-engaged work may be pensionable, agency work generally is not. The first step for any locum is to establish, for each strand of work, whether it counts towards the NHS scheme or needs private provision.
Discipline with irregular, untaxed income
Locum income often arrives gross, with tax and pension entirely your responsibility — a freedom that can become a trap. Without payroll deductions nudging you to save, it is easy to spend everything and reach retirement with little put by beyond patchy NHS service. The disciplined approach is to set aside a fixed share of every payment for pension and tax as it arrives, ideally into a separate account, then make regular or quarterly SIPP contributions. Treating pension saving as a non-negotiable cost of locuming, rather than an optional extra, is what separates locums who retire comfortably from those who do not. Automating contributions removes the temptation entirely.
Verdict
The best pension for a locum is a two-part strategy: pension every bit of NHS-eligible work through the NHS Pension Scheme (submitting Forms A and B on time for GP locums), and channel non-pensionable agency or company income into a low-cost SIPP. Vanguard and AJ Bell are the standout homes for the private element. The most common — and costly — locum mistake is simply failing to claim pensionable NHS work, so stay on top of the paperwork.
Related reading: best pension for NHS workers, best pension for contractors, and best SIPP providers.